Do you know why China Steel Price Sharp Raising ?
Afer China Spring Festival, China steel market acts raising instead of downing trend before holiday.Last weekend, Mar 5th,6th,2016 just two days china steel billet price raised more than 240 RMB per ton. (1USD =6.5RMB),Mar 7th,2016 Monday this raising trend going on.For example,for the Cold rolled products,price adjust five time one day, continously raising 360-450 RMB per ton.price over 3000RMB per ton up to 3300 RMB per ton.
Some seller stopped selling products with this situation and thought it will go on raising in the later days.
Considering China situation, most though below maybe are the main reasons why price raised sharply:
1.During the NPC and CPPCC sessions£¬Goverment emphasizes the point will reduce the Iron and steel production capacity.
2.The International Horticultural Exhibition is going to be held,some news said ssteel mills in tangshan has to limit prroduction or stop production,this will effect regular production arrangement.
3.End of 2015, China steel market down so much,lot of mills loose .so they hope the market can start raising.
to improve the bad situation they are facing.
With the above pushing and after new year some project starts, so all these give the price a push for raising.